Chapter China Mobile\'s Hot Signal 5 Discussl and Warner announced tha pine-stud
ID: 372566 • Letter: C
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Chapter China Mobile's Hot Signal 5 Discussl and Warner announced tha pine-studded foothills of the Tibetan plateau, the village is little more than a few dozen stone houses y in its sweep through China. Nestled at 10,000 feet in and a Buddhist Mobiles Mont What's beh goucun feels like the kind of place that progress missed cell phone int vely shrine. Getting there from the nearest big city, Chengdu, takes five hours by c the is downloads. D with the launc ar, much of it on a muddy, rutted road. m the fields of barley, potatoes, and corn, it's clear that the twenty-first century has finally made it to Dagoucun. Last year, the village in time for the got cell-phone service, dramatically transforming the way its consultancy B residents live and work. With better information about crop vices will jump prices delivered to their phones, farmers have started planting 2010. Wang bo more marketable crops such as Chinese cabbage and herbs for China's cell-ph traditional medicines. And they no longer have to truck their ment, and musi produce to distant cities in hopes of finding buyers. "Before, Mobile plunke we had to travel 20 kilometers to make a phone call," says in Phoenix Sate village chief Xie Sufang, a 65-year-old mother of seven. popular cabler Now we contact the buyers, and they come to us China Mob 3 The company responsible for bringing change to this rural million purchas outpost: China Mobile Ltd. Since it was spun off from fixed-2007, will be th line operator China Telecom Corp. in 2000, China Mobile has grown into the world's biggest early last year i People's Teleph cellular carrier The company igning up nearly 5 million new customers a month and China Mobile r recently topped the 300 million mark -more than the entire Millicom Intern population of the United States. In 2006, revenues grew 21 percent, to $37.8 billion, and net income 23 percent, to $8.7 billion, estimates Deutsche Bank. And its Hong Kong-traded shares more than doubled in the past year, giving China Mobile a market capitalization of $198 billion and making it the most valuable cellular carrier on earth. The company also has global ambitions: on January 22, 2007, it announced it was buying 89 percent of Paktel Ltd., Pakistan's fift cellular carrier mobile network But negotiation the collapse of interested in ac are familiar wit stan's fifth-largest Very similar to Wang has pl China Mobile built its early success on urban China. Problem is, just about everyone in mainland cities who lular service already has it. Mobile-phone penetration in Bei Shanghai, and Shenzhen is approaching 100 percent. So to growing, China Mobile is plunging ever deeper into the interior building cell towers from the deserts of Inner Mon mountains of Tibet. In rural China, home to 700 millio over 1 in 10 people has a cell phone. "lt is a market with huge potential," says China Mobile Chairman Wang Jianzhou 4 turns up the co now, China Mob Unicom Ltd. Lik can afford cel- jing,d and the interior, ions it faces in r Mongolia to the dards. China Ma just using a single tec China Mobile's torrid growth hasn't escaped the attention of Western companies seeking to both urban and rural. The carrier has inked agree Vodafone Group, News Corp, Viacom's MTV and the National Basketball Association. Last summer, ChinE Mobile launched a music-download service called Mna both current car the potential of China, Group and China Networks, PROFIT PExplanation / Answer
As per the article, China's mobile users have exceeded the 300 million mark which is the entire population of the US. This shows that the mobile insutry and market are very different in both countries.
The first and basic factor is the vast difference in population. Also, only-mobile users in China are much more than US which do not use desktop or laptops for internet which means that Chinese users are much more mobile heavy.
China Mobile also dominates this chinese market and has very few competitors as compared to the US counterparts. Moreover, they have approximately large number of Chinese users who still are not using the Internet. This allows a much greater growth rate for the industry in China.
After building its success on urban parts of the country, China Mobile also runs a leaner operation in the countryside which allows them to maintain the inflow of new customers as well as low rate of disconnections. In rural areas only 1 in 10 people have cell phones and the population estimate is 700 million. Hence a big market is right ahead of them.
And they are also seeking international markets in Africa and Latin America by purchase of Paktel. The growth opportunities are much bigger than US.
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